Countdown to doubling the minimum wage

of Dimitris Katsaganis

The countdown for the double increase of the minimum wage in 2022 has started. The first increase (2%), which has been decided and announced by the government, will take effect on January 1, 2022.

The second, which has been announced by the Prime Minister himself, but has not yet been decided – as the consultation provided by law must “run” – will take effect in the first half of 2022.

In practice, this means that it will be valid from June 1, 2022 at the latest (although according to other interpretations of Mitsotakis’ statements, it can be valid from July 1), as competent analysts interpret the Prime Minister’s statements.

Regarding the percentage of the second increase, the Minister of Labor, Kostis Hatzidakis has stated that it will be “much more important” than the first, while his information Capital.gr report that it is expected to range between 4% and 6%, with the most likely forecast to increase to 6%. Along with the minimum wage, various OAED bonuses will increase accordingly.

Yesterday by announcement of the Ministry of Labor, it is pointed out that with a decision of the Minister of Labor and Social Affairs Kostis Hatzidakis – following the consent given by the Council of Ministers last July after a relevant suggestion of the then competent Minister – the legal minimum wage is determined according to the current legislation and legal minimum wage, for full-time employment, for employees and craftsmen across the country, as follows:

a) For employees the minimum wage is increased by 2% and is set at 663 euros from 650 euros previously.

b) For craftsmen the minimum wage is also increased by 2% and is set at 29.62 euros from 29.04 euros previously

The decision enters into force on January 1, 2022.

Regarding the process of the additional increase of the legal minimum wage and the legal minimum wage in 2022, the recent statements of both the Prime Minister Kyriakos Mitsotakis and the Minister of Labor and Social Affairs Kostis Hatzidakis apply in full, the same announcement points out.

What the law provides

It is recalled that based on the institutional framework (Law 4173 of 2013), “the amount of the statutory minimum wage and the statutory wage should be determined taking into account the situation of the Greek economy and its prospects for growth in terms of productivity, prices , and competitiveness, employment, unemployment rate, income and wages “.

The schedule of procedures for redefining the minimum wage has the following 6 steps:

The sending of a written invitation by the Coordination Committee of the consultation, takes place within the last ten days of March 2022.

– The preparation and submission of the report take place no later than April 30, 2022.

The transmission of the memorandum and the documentation of each consulted by the Coordination Committee of the consultation to the other representatives of the social partners, with an invitation for oral consultation, takes place no later than 15 May 2022.

– The transmission of all the memoranda and the documentation of the consultants, as well as the report of the specialized scientific and research bodies to the Center for Planning and Economic Research (KEPE) for the preparation of a Consultation Draft Plan, takes place no later than May 31, 2022.

– The Draft Consultation Finding is completed by 30 June 2022 at the latest.

-The suggestion of the Minister of Labor and Social Affairs to the Council of Ministers, for the determination of the minimum wage of employees and the minimum wage of craftsmen, takes place within the last fortnight of July 2022.